India's retail lending showed moderated growth during quarter ending Sept 2023
India’s retail lending showed moderated growth during the quarter ending September 2023 as financial institutions tightened the supply of credit, especially on consumption-led products like credit cards, consumer durable loans, and personal loans
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New Delhi, Feb 6: India’s retail lending showed moderated growth during the quarter ending September 2023 as financial institutions tightened the supply of credit, especially on consumption-led products like credit cards, consumer durable loans, and personal loans.
Credit performance, as measured by balance-level delinquencies, improved across most products, apart from credit cards and personal loans, as per TransUnion CIBIL Credit Market Indicator (CMI) report for September 2023.
The CMI findings showed a year-over-year (YoY) decline in the growth rate of overall originations, resulting in a marginal decline in the CMI supply index from 98 in September 2022 to 95 in September 2023.
Growth of consumption-led credit products moderated in the quarter ending September 2023, including personal loans.
Home loans have shown 9% growth in value in the quarter ending September 2023, compared to the same period in the previous year.
However, in terms of volume, low value home loans which form 76% of originations, have dropped by 4%, impacting overall home loan originations growth. It is important to note that the share of new-to-credit (NTC) consumers in originations dropped from 17% in the quarter ending September 2022 to 14% in the quarter ending September 2023, resulting in a decrease in share of NTC origination volumes from 12% in the quarter ending September 2022 to 10% in the quarter ending September 2023.
Overall balance-level serious delinquencies (measured as 90 days or more past due) continued to improve across product categories, except for marginal deterioration in credit cards and personal loans.
